Increased Investment Costs Research Articles

Impact of choice of CO2separation technology on thermo-economic performance of Bio-SNG production processes

Three different CO2 separation technologies for production of synthetic natural gas (SNG) from biomass gasification – amine-based absorption, membrane-based separation and pressure swing adsorption – are investigated for their thermo-economic performance against the background of different possible future energy market scenarios. The studied scale of the SNG plant is a thermal input of 100 MWth,LHV to the gasifier at a moisture content of 20 wt-% with a preceding drying step reducing the biomass' natural moisture content of 50 wt-%. Preparation of the CO2-rich stream for carbon capture and storage is investigated for the amine-based absorption and the membrane-based separation technology alternatives. The resulting cold gas efficiency ηcg for the investigated process alternatives ranges between 0.65 and 0.695. The overall system efficiency ηsys ranges from 0.744 to 0.793, depending on both the separation technology and the background energy system. Amine-based absorption gives the highest cold gas efficiency whereas the potential for cogeneration of electricity from the process' excess heat is higher for membrane-based separation and pressure swing adsorption. The estimated specific production costs for SNG cSNG for a process input of 90.3 MWth,LHV at 50 wt-% moisture vary between 103–127 €2010/MWhSNG. The corresponding production subsidy level csubsidy needed to achieve end-user purchase price-parity with fossil natural gas is in the range of 56–78 €2010/MWhSNG depending on both the energy market scenario and the CO2 separation technology. Sensitivity analysis on the influence of changes in the total capital cost for the SNG plant on the production cost indicates a decrease of about 12% assuming a 30% reduction in total capital investment. Capture and storage of biogenic CO2 – if included in the emission trading system – only becomes an option at higher CO2 charges. This is due to increased investment costs but, in particular, due to the rather high costs for CO2 transport and storage that have been assumed in this study.

ECONOMIC EVALUATION OF PALM PRODUCTION IN PROJECTS OF YOUNG GRADUATES IN NEW LANDS

The study aims at estimating internal rate of return for the cultivation of date palms project in the new lands to encourage small investors and young graduates, to adopt projects of sustainable agricultural development under the assumption of change revenues and invested costs of the project. Also, explaining some productivity and economic indicators to produce dates in Egypt. The study showed that palm area, number of fruitful palms, palm productivity and the total production of dates annually increase at significant rates during the period of 1996 - 2010. The most important regions producing dates are Behera, Ismailia, 6 October, Aswan, New Valley, Matrouh and Noubaria zone. The most important cultivated varieties are Zaghloul, Samani, Meghal and Siwei. The study indicated that internal rate of return in the new lands as in Northern Sinai, Matrouh and the New Valley reached 28%. It was observed that decreasing total revenue up to 25% with increasing investment costs up to 25%, the internal rate of return is not less than 18%. So, cultivation of date palms is economically a profitable project. Thus, this project contributes to the horizontal agricultural expansion, reducing desertification, encourages some industries related to palm cultivation, creates new jobs, increases date export opportunities to overseas markets and increases agricultural income. Also, profits gained by young graduates are sufficient to pay annual premiums of received loans in addition to the interest of these loans, so that the left return is enough for their livelihood.

ANALISIS KELAYAKAN FINANSIAL USAHATANI KOPI ARABIKA DI DESA BANDUNG BARU KECAMATAN KABAWETAN KABUPATEN KEPAHIANG

The research was conducted in Desa Bandung Baru, Subdistrict Kabawetan Kepahiang Regency Bengkulu Province. The purpose of this study were : 1) To Analyze the financial feasibility of arabica coffee farm in village of Bandung Baru subdistrict Kabawetan Kepahiang regency Bengkulu Province from the financial aspect, 2) To Calculate the payback period and the level of sensitivity against the declaine in Arabica coffee farm production, price reductions, increased investment costs, operating costs and maintenance. Determination of respondent carried out using Stratified Random Sampling, data consist of primary data and secondary data. The number of respondent in this study were 40 samples. The results of this study indicate that the views of financial aspects of Arabica coffee farm worth the effort, this is apparent from the Net B/C is 2,17 (>1), Gross B/C value is 1,28 (>1), PV”/K value is 2,11 (>1), NPV of Rp. 18.847.733 and IRR value is 26,60 %. Sensitivity analysis shows that if there was increase in production 29%, price of production decreased 22% and decrease production 22%. Keywords: arabica coffee farming, financial feasibility analysis, sensitivity analysis

모바일 네트워크에서 인터넷 응용을 위한 향상된 ID관리 프로토콜

최근 급속도로 보급되고 있는 스마트폰과 SNS(Social Network Service)로 인한 인터넷 응용프로그램 활용의 증가는 3G 네트워크 이상의 네트워크 대역폭을 빠르게 잠식해가고 있으며 이로 인한 속도 저하와 서비스 질 저하로 인한 기간통신사들의 시설투자비 증가 요구가 강하게 대두되고 있다. 아울러 모바일 네트워크 사용자의 폭증에 따르는 모바일 서비스 제공자와 모바일 네트워크상의 ID관리문제를 촉발하고 있다. 본 논문은 3G 네트워크에서 모바일 인터넷 응용 서비스상의 사용자 ID관리와 보안문제를 해결하기 위한 프로토콜로 제안된 IDM3G[1]를 기반으로 보다 향상된 인증관리 프로토콜을 제안한다. 제안하는 <TEX>$I^2DM$</TEX> 프로토콜은 기존의 IDM3G 프로토콜이 MO를 통한 상호 인증을 수행하면서 발생시키는 부하를 모바일 인터넷 응용 서비스 제공자에게 일정 부분의 역할을 분산시킴으로써 모바일 및 서비스 제공자의 ID관리와 함께 네트워크 부하와 정보처리를 위한 프로세스 부하 그리고 송수신되는 패킷의 수를 보다 효율화한다. 향후 더욱 그 수요가 폭증할 것으로 예상되는 3G 이후의 모바일 네트워크에 대한 수요를 대비하여 보다 최적화된 프로토콜을 제안한다. Due to rapid spread of smart phones and SNS(Social Network Service), using of Internet applications has increased and taking up bandwidth more than 3G network's capacity recently. This caused reduction of speed and service quality, and occurred strong needs that backbone network company to increasing investment costs. Also a great rise of mobile network users causing identity management problems on mobile service provider through mobile network. This paper proposes advanced IDM3G[1] - to solve user ID management and security problems on mobile internet application services over 3G network and more - authentication management protocol. <TEX>$I^2DM$</TEX> protocol breakup loads which made by existing IDM3G protocol's mutual authentication via mobile operator, via sending some parts to internet application service provider, enhancing mobile and ID management of service provider and network load and process load from information handling and numbers of transmitting packets, to suggest more optimized protocol against further demanding of 3G mobile network.

Low‐energy versus conventional residential buildings: cost and profit

PurposeThe purpose of this paper is to investigate the commercial aspect of “green” building construction and whether increased investment costs are profitable taking the reduction in operating costs into account. The investment viability is approached by comparing investment in conventional and “green” residential building, particularly passive houses, using real construction and post‐occupancy conditions.Design/methodology/approachThe key data were obtained by surveys and personal interviews. The first survey was directed to the companies which had experience of building low‐energy housing and the second survey to housing companies that actively manage operation of low‐energy houses.FindingsFindings indicate that low‐energy buildings are considered an interesting and sound business opportunity, and investment analysis indicates that low‐energy houses (particularly passive houses) can be more attractive investments than conventional residential buildings. The long‐term strategy of building low‐energy buildings can give competitive advantages. The government initiative and the construction regulations are found to be necessary in eliminating the initial barrier to energy‐efficient projects and achieving long‐term environmental goals.Originality/valueThis paper provides insights into the investment decisions and contributes to the understanding of the construction, operation and profitability of energy‐efficient residential buildings.

Comparison of a pilot scale gasification installation performance when air or oxygen is used as gasification medium 1. Tars and gaseous hydrocarbons formation

It is predictable that in the near future fossil fuels will continue to have the greatest contribution to energy production. Thus, it is necessary to develop and improve technologies that ensure low CO2 emissions. Oxy-gasification is one of such technologies, as the use of oxygen instead of air will allow solving the problem of nitrogen dilution effect in syngas and consequently will simplify the process of CO2 capture. On the other hand, the use of oxygen will increase investment costs, as an oxygen production unit will have to be added to the overall installation, and operation costs will also rise, due to the extra energy necessary for oxygen production. Apart from this, it is important to check the performance of installations initially designed to operate with air, when retrofitted to use oxygen and to analyse the effect that this change may have on syngas composition. In this work the effect of gasification agent on syngas composition, including tar content was determined during co-gasification of two types of coals (German and Polish) mixed with several wastes, like pine, olive bagasse and polyethylene (PE). Air and steam or oxygen and steam mixtures were used as gasification agent, keeping constant ER (equivalent ratio), that is to say, for each coal and wastes blend the oxygen flow was the same for both gasification agents. However, when oxygen was used, gas flows fed into the gasifier were lower than those used in presence of air, which means that residence times were higher than when air was used. Therefore, syngas presented lower hydrocarbons contents and higher CO2 concentrations, probably because there was more time for reactions to occur in presence of oxygen.

Performance Assessment of SOFC Systems Integrated with Bio-Ethanol Production and Purification Processes

The overall electrical efficiencies of the integrated systems of solid oxide fuel cell (SOFC) and bio-ethanol production with purification processes at different heat integration levels were investigated. The simulation studies were based on the condition with zero net energy. It was found that the most suitable operating voltage is between 0.7 and 0.85 V and the operating temperature is in the range from 973 to 1173 K. For the effect of percent ethanol recovery, the optimum percent ethanol recovery is at 95%. The most efficient case is the system with full heat integration between SOFC and bio-ethanol production and purification processes with biogas reformed for producing extra hydrogen feed for SOFC which has the overall electrical efficiency of 36.17%. However more equipment such as reformer and heat exchangers are required and this leads to increased investment cost.

Multi-objective planning of distributed energy resources: A review of the state-of-the-art

The use of Distributed Energy Resources (DER) has been proposed as one of the possible solutions to today's energy and environmental challenges. The optimal integration of DER in distribution networks is essential to guarantee the best of resource, i.e. maximize their benefits, such as reduction of carbon emissions, reduction of network energy losses and to minimize the negative impacts, which can affect the network quality, cause network sterilization and increase investment and operation costs. Hence, DER planning is a multi-objective problem in which many objectives of interest, sometimes conflicting, need to be optimized simultaneously, and where a compromise for different perspectives (DER developer, Distribution System Operator, regulator) needs to be found. Appropriate multi-objective planning methods that consider technical, environmental and economic impacts of DER integration, and that are able to support a suitable model of stochastic DER and active networks, can provide a deep insight into the case specific and general advantages and drawbacks of DER. Consequently, the interest in multi-objective DER planning has increased in recent years, and a number of novel methods have been proposed in this area. This paper provides a timely review of the state-of-the-art in multi-objective DER planning, and discusses in detail the challenges, trends and latest developments in this field.

Competition between biofuels: Modeling technological learning and cost reductions over time

A key aspect in modeling the (future) competition between biofuels is the way in which production cost developments are computed. The objective of this study was threefold: (i) to construct a (endogenous) relation between cost development and cumulative production (ii) to implement technological learning based on both engineering study insights and an experience curve approach, and (iii) to investigate the impact of different technological learning assumptions on the market diffusion patterns of different biofuels. The analysis was executed with the European biofuel model BioTrans, which computes the least cost biofuel route. The model meets an increasing demand, reaching a 25% share of biofuels of the overall European transport fuel demand by 2030. Results show that 1st generation biodiesel is the most cost competitive fuel, dominating the early market. With increasing demand, modestly productive oilseed crops become more expensive rapidly, providing opportunities for advanced biofuels to enter the market. While biodiesel supply typically remains steady until 2030, almost all additional yearly demands are delivered by advanced biofuels, supplying up to 60% of the market by 2030. Sensitivity analysis shows that (i) overall increasing investment costs favour biodiesel production, (ii) separate gasoline and diesel subtargets may diversify feedstock production and technology implementation, thus limiting the risk of failure and preventing lock-in and (iii) the moment of an advanced technology's commercial market introduction determines, to a large degree, its future chances for increasing market share.

Performance analysis of the building envelope: A case study of the Main Hall, Shinawatra University

The envelope of the Main Hall, Shinawatra University has been designed to provide protection from energy gain. According to initial estimates, the Main Hall could achieve an overall thermal transfer value (OTTV) of 10.16 W/m 2, which is four times lower than those recommended by the Thai national standard. This study aims to evaluate the actual energy performance of the Main Hall building envelope using field measurements and simulations. The air temperature, surface temperature, and relative humidity were measured at frequent intervals, both indoors and outdoors. Hourly average meteorological data for insolations were utilized in order to calculate the solar gain by light transmission. Based on the empirical data, the energy fluxes through the envelope on eight different orientations were simulated and the average value was found within 7% of the estimated OTTV. Using the same empirical data for the outdoor condition, simulations of other common types of building envelope in Thailand were carried out for comparison. The results of the analysis show that the Main Hall's lightweight and highly insulated building envelope outperforms other commonly used heavyweight envelopes in preventing building energy gain in the hot-humid climate of Thailand. Although the use of the lightweight and highly insulated envelope helps reduce the operating and investment costs of the air conditioning system as well as the cost of building structure, it also increases the investment cost of the envelope substantially. However, the life cycle cost analysis (LCCA) reveals that the life cycle cost (LCC) of the Main Hall envelope is the most economical, and the increased investment cost of the Main Hall envelope requires a discounted payback period of only 3–5 years, depending on the envelope types used in the comparison. Furthermore, it should be noted that greater savings and a more favorable pay back period could be obtained if this highly energy efficient envelope is applied to other typical buildings, especially high-rise structures in urban areas.

Development of a design and performance prediction tool for the ground source heat pump system

This paper introduces a novel design and performance prediction tool for the ground source heat pump (GSHP) system. This tool features, a user-friendly interface for data input and graphical output. First, an outline of this tool was described. Next, the authors validated temperature variation calculated by theoretical method of the developed tool compared with one measured in the thermal response test. The thermal response test was carried out in a house garden in Sapporo. Giving the calculated conditions, the calculated temperature variation almost traced the measured value. The developed tool’s preciseness was proved with the results. In final, performance prediction and feasibility study of a residential GSHP system in Sapporo was performed with this tool as an example. Results of the calculations show that the life cycle CO 2 emission (LCCO 2) of the GSHP system is 2038 kg-CO 2/year and it is less than half compared to conventional oil boiler systems. Also, the GSHP system can reduce life cycle cost (LCC) by 50,000–90,000 Japanese-yen/year. The payback time for increased investment cost of the GSHP system is about 9–14 years in comparison with other conventional systems.

Statistical Discrimination and Efficiency

This paper asks whether statistical discrimination is a market failure. I consider the problem for a utilitarian social planner who operates in an environment that can generate statistical discrimination as an equilibriumphenomenon. It is found that there are potential efficiency gains from discrimination in terms of reduced mismatch between workers and jobs. Whether the solution to the planning problem involves discrimination depends on the trade-off between the informational gains of specialization and the losses in terms of increased investment costs.

Statistical Discrimination and Efficiency

This paper addresses a fundamental, yet unresolved, question: is statistical discrimination a market failure? I consider the problem for a utilitarian social planner who operates in an environment with imperfectly observable human capital investments. It is found that the informational problem that makes equilibrium discrimination between identical groups possible also creates efficiency gains from discrimination in terms of reduced mismatch between workers and jobs. Whether the solution to the planning problem involves discrimination depends on the trade-off between the informational gains of specialization and the losses in terms of increased investment costs.

Financial implications on power generation costs resulting from the parasitic effect of CO 2 capture using liquid scrubbing technology from power station flue gases

Four power generation options covering the spectrum of methods of fossil fuel power generation were used as the base cases to determine the resultant increase in base case levelized generating costs resulting from CO 2 capture from the flue gas of a 500 MW c power station by liquid scrubbing technology. Suitable liquid scrubbing technology for CO 2 capture was investigated only for end of pipe treatment, after upstream FGD (where applicable), for each of the options of a 500 MW e power station from coal and natural gas at a coastal site in the Netherlands. The three coal options were based on pulverised fuel, IGCC, and coal combustion in a mixture of oxygen and recycle gas respectively, whilst the natural gas option was based on a sulphur free NGCC. Only commercially proven liquid scrubbing technology screened in economic and technical terms. Inhibited MEA (monoethanolamine) was the most acceptable for the conventional pulverised coal fired power station, the IGCC coal fired power station and the NGCC plant. Selexol® was the most suitable for combustion of coal in the recycle mixture. In all cases pre treatment was necessary to remove traces of NO x and/or SO 2 which otherwise would cause solvent degradation. As a consequence of CO 2 capture, drastic reductions of both acid gases and particulates occur. The reduction in overall generating efficiency over the four options ranged from 2.4 to 13.5 per cent corresponding to an increase in power station nameplate capacity of 540 to 740 MW e to achieve a net export of 500 MW e after CO 2 capture and regeneration. Investment costs increased substantially by between 52 to 108 per cent in terms of $/kW so. Over the range of options the resultant levalised base case generating costs increased from 22 to 108 per cent. The conventional PF coal power station showed an increase from 53.4 to 80.38 mills/kWh so and the natural gas (sulphur free) NGCC plant showed an increase from 32 to 50.24 mills/kWh so. In the case of the non conventional combustion of coal in recycle gas the cost increased from 83 to 101 mills/kWh so. Because the base case selected for the coal based IGCC plant required CO 2 to be captured at almost atmospheric conditions, rather than at higher pressure, the costs were seriously distorted and are not readily comparable with the other options. The nett parasitic effect was not only to substantially increase investment costs but also to substantially increase the basic cost of electricity irrespective of the type of fuel and method of power generation. The balance between a CO 2 tax and CO 2 capture cannot be inferred without taking into cognisance the additional cost of CO 2 disposal.

Prices of utilities and process structure

Influence of utility prices on the optimum process structure was studied. Different prices of utilities and increasing investment costs (inflation) over three different decades have been considered. In one decade the fuel price was very low while in another one it was very high. Process structures in these decades were derived using pinch and nonlinear programming methods on a hydrodealkylation of toluene process with diphenyl recycled. The results showed that structures differed in the three decades because of different prices and for that reason a common process configuration, usable both for eventual future high or low fuel prices, could be developed.

Economic analysis of a husk-fueled gasifier power plant at a rice mill in Africa

A Chinese-built gasifier power plant fueled with rice husks has been installed at the Molodo rice mill in Mali under a cooperative program of the governments of the Federal Republic of Germany, the Republic of Mali, and the People's Republic of China. A report by the German Agency for Technical Cooperation (GTZ) compared the cost of electric power for the Molodo rice mill from (a) a diesel power plant consisting of two 170 kVA generating sets and (b) the Chinese gasifier power plant. The total cost of energy from the gasifier plant was only slightly more than half that from the diesel plant. Despite the high capital cost of the gasifier system, GTZ concluded that the increased investment costs of the gasifier power plant could be recovered in less than four years.

Basic considerations influencing the choice of materials for thermal seawater desalination plants

Model calculations were used to ascertain in what circumstances extra investment in better materials pays off for thermal seawater desalination plants. The most important result obtained is that such expenditure is definitely worthwhile in all cases in which it allows plant lifetime to be prolonged by several years. The study reveals that in such cases even substantially increased investment cost can lead to a marked reduction in production cost and for this result to be achieved it is sufficient for plant lifetime to be extended by only a few years. A plant with an investment cost nearly 50% higher produces water at lower cost than the cheaper plant if plant lifetime is increased by as little as two years; availability is improved by 14%, and annual maintenance cost is halved, the decisive factor, however, is the increased lifetime.

The Turnkey Era in Nuclear Power

The turnkey era is viewed as a temporary deviation from the traditional pattern of conventional contracting that arose because of the informational problems associated with scaling of nuclear reactors to commercial size. General Electric's decision to offer turnkey contracts at a cost competitive with coal units was a decision to invest in a private demonstration program with prospective quasi-rents from later-generation reactors. Competition from Westinghouse kept turnkey prices at levels that increased investment costs for both GE and Westinghouse, and cut into profits in the post-turnkey era. The return to conventional contracting was a natural development, which occurred as soon as the reactor manufacturers had obtained sufficient orders to provide the scaling information they required. The return was natural because the incentive structure of the regulated utility industry encourages risk taking on the part of utilities in their contracting for capital goods. The preference of utilities for conventional over turnkey contracts contributed to the post-turnkey boom in nuclear orders, which occurred before bottlenecks and other difficulties caused such massive cost increases that the economic merits of nuclear power became questionable.

VI. Automobile assembly

Publisher Summary This chapter presents the automobile assembly. The serial production line shown in the film has been replaced by a parallel arrangement, which offers more flexibility to the workers. The automation techniques as used by Volvo (Kalmar) and Fiat (Mirafiori) are more expensive, more space consuming, and give more difficulties with production of a mixture of car models. In the case of Fiat, the increased investment costs have been balanced by labor savings and less absenteeism. Humanization of work should be efficient. In the German Federal Republic, there is a shortage of skilled labor. The chapter discusses the reaction of the workers and their acceptance of the changes.

Planning of Systems

The methodology of planning systems to meet stated goals in an optimum manner while recognizing all pertinent constraints is being given increasing attention by systems engineers. In the electric utility industry the greatly increased complexity of the systems required to meet anticipated load growth, the advent of large-scale interconnection of systems, increasing investment costs and the pressure for continued economy of service have necessitated continuing efforts to achieve more comprehensive and exacting approaches to system planning. Significant progress in system planning has been achieved to date in the electric utility industry. Integrated digital computer programs have been devised which permit the modeling of the technical and economic performance of future system design alternatives and aid the system planner in obtaining an optimum total system beginning with the sources of fuel and ending with the final delivery of power to the customer. By the methods presented in this paper the total present worth cost of various alternative system designs may be readily obtained. Limited work has been undertaken concerning the direct optimum synthesis of a system plan. The major difficulty in direct synthesis arises from the complex interrelationships of the variables and the high dimensionality of the problem.